MAPUTO, Mozambique – Efforts to close Africa’s infrastructure deficit have received a major boost following the signing of a landmark agreement between the African Development Bank Group (AfDB), the African Continental Free Trade Area (AfCFTA) Secretariat, and Africa50.
The Memorandum of Understanding (MoU), announced during the Africa50 General Shareholders Meeting in Maputo, seeks to address the physical and digital infrastructure gaps that have long constrained trade and economic integration across the continent.
The tripartite deal aims to unlock the potential of AfCFTA’s $3.4 trillion (Sh439.6 trillion) market — the world’s largest free trade zone since the establishment of the World Trade Organisation (WTO).
Under the agreement, the institutions will collaborate to design, finance, and maintain critical infrastructure projects, including transport corridors, logistics hubs, ports, airports, and cross-border facilities, while also expanding digital connectivity.
Driving Intra-African Trade
Despite its vast potential, intra-African trade remains low, accounting for just 15–18 per cent of the continent’s total trade, compared to 68 per cent in Europe and 59 per cent in Asia.
The new collaboration is expected to double intra-African trade to 25 per cent by 2030, reduce the cost of doing business, and improve competitiveness by tackling logistical bottlenecks.
AfDB Vice-President for Private Sector, Infrastructure and Industrialisation Solomon Quaynor said the Bank has invested over $55 billion (Sh7.1 trillion) in infrastructure over the last nine years, including $8 billion (Sh1.03 trillion) for 109 cross-border projects between 2014 and 2024.
“The tripartite agreement underscores the paramount importance of realising the full potential of the AfCFTA single market with its combined GDP of $3.4 trillion through the establishment of transport infrastructure,” Quaynor noted.
Africa50 CEO Alain Ebobissé said the partnership would accelerate the development and financing of trade-enabling infrastructure, calling it “one of the continent’s greatest endeavours.”
Beyond Transport: Digital Connectivity
Recognising the role of technology in trade, the MoU also prioritises investment in digital infrastructure.
Plans include building data centres, digital trade platforms, and ensuring high-speed connectivity along trade corridors to enable African enterprises to access the global digital economy.
The agreement will be implemented over three years through joint work plans and technical working groups, ensuring alignment with AfCFTA policies and national priorities, while embedding ESG (environmental, social, and governance) principles and robust performance tracking.
